from Zero Hedge:
Janet Yellen is set to begin the first part of her two-day excuse-fest for why The Fed will raise rates (market implied odds at 74%) in December despite Chinese stocks crashing again, carnage in commodities,a revenues recession, plunging EBITDA, a collapse in US manufacturing, housing rolling over, and auto sales fading (yes, read the facts here). Few expect her to rock the boat to change the market’s perception, especially following Lockhart’s confirmation that The Fed’s job mandate has been met.
Yellen will speak before the Economic Club of Washington at 12:25 p.m. ET. She also testifies on the economic outlook before a joint committee of Congress on Thursday.
- *YELLEN: LABOR MARKET GAINS BOLSTER HER CONFIDENCE ON INFLATION
- *YELLEN: DELAYING LIFTOFF TOO LONG RISKS ABRUPT TIGHTENING LATER
- *YELLEN: DOWNSIDE RISKS FROM ABROAD HAVE LESSENED SINCE SUMMER
- *YELLEN: DATA SINCE OCT. FOMC SHOW LABOR MARKET GAINS
- *YELLEN: FISCAL POLICY TO BE POSITIVE FOR GROWTH IN COMING YRS
- *YELLEN SEES RISKS TO OUTLOOK AS `VERY CLOSE TO BALANCED’
- *YELLEN SAYS SLOWDOWN IN CHINA LIKELY TO BE MODEST AND GRADUAL
- *YELLEN: CHINA HAS TAKEN ACTION AND COULD DO MORE IF NEEDED
- *YELLEN SAYS HOUSEHOLD SPENDING PARTICULARLY SOLID IN 2015
Were the FOMC to delay the start of policy normalization for too long, we would likely end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of our goals. Such an abrupt tightening would risk disrupting financial markets and perhaps even inadvertently push the economy into recession
Ironically, it is rate hikes that have been the cause of every single recession since the arrival of the Fed.
The full speech can be found here, and a word cloud is below:
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